Morning Briefing: World stocks begin the week mixed

Morning Briefing: World stocks begin the week mixed

World stocks begin the week mixed
Post-Brexit caution continues to add a negative tinge to markets with Europe and North America most cautious while Asian investors are less impacted by the fallout.

Asian indexes closed higher Monday with Shanghai leading the gains. IN Sydney, the market rose despite a clear winner in the Australian federal election over the weekend. The country’s central bank is due to announce its latest interest rate decision Tuesday with most analysts expecting a hold-steady.

Tension between the EU and UK has been exacerbated by the British finance minister proposing a sharp cut in corporate taxes to 15 per cent, which would undercut EU rivals.

There is volatility in the European markets this morning with Brexit rhetoric flying across the English Channel and a dispute over a planned merger which would bring the German and UK stock exchanges under a single owner. Critics say that the largest economy in the Eurozone should not be owned by a company headquartered in London which will be outside the EU.

Wall Street is closed for US Independence Day but Toronto will be re-opening following the Canada Day holiday Friday.

Latest

1 month ago

1 year ago

North America (previous session)

US Dow Jones

17,949.37 (+0.11 per cent)

+0.80 per cent

+1.24 per cent

TSX Composite

14,064.54 (+0.20 per cent)

+0.01 per cent

-3.36 per cent

Europe (at 4.30am ET)

UK FTSE

6,584.40 (+0.10 per cent)

+6.04 per cent

-0.02 per cent

German DAX

9,759.56 (-0.17 per cent)

-3.40 per cent

-11.75 per cent

Asia (at close)

China CSI 300

3,204.70 (+1.60 per cent)

+0.48 per cent

-17.53 per cent

Japan Nikkei

15,775.80 (+0.60 per cent)

-5.21 per cent

-23.19 per cent

Other Data (at 4.30am ET)

Oil (Brent)

Oil (WTI)

Gold

Can. Dollar

50.33
(-0.04 per cent)

49.01
(+0.04 per cent)

1352.70
(+1.02 per cent)

U$0.7758

Aus. Dollar

U$0.7520

Gold gains but “all time high” to come says analyst
Gold prices are up more than 1 per cent Monday as investors eye safe havens amid equity and bond market volatility. Swiss Asia Capital’s managing director and chief investment officer, Juerg Kiener, has given more good news to gold producers Monday, telling CNBC that he expects prices to reach an all-time high within the next 18 months.

The view is not a universal one and Keiner admits that investing in gold may not bring high yields, or even none, but he doesn’t expect it to make a loss. “You've got falling production, falling inventory and a demand cycle which is picking up," he said.